China Says Local Debt Under Control, No Systemic Risk Seen

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China’s ballooning municipal borrowing was the No. 1 financial risk this year for investors across Asia

(Bloomberg) — China said local government debt is manageable and authorities have enough financial resources to avoid risks from spreading, seeking to allay investor fears of possible defaults.

The official Xinhua News Agency published a report Monday responding to recent concerns about local government finances. It quoted an unidentified official from the Ministry of Finance as saying government finances are generally healthy and urged local authorities to tackle their debts.